Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

The daily chart of Travelers Cos Inc. shows a medium term
rising trend that started in early October 2011.

The Elliott Wave analysis reveals the development of a
primary third impulsive wave (III). Breaking down the waves, the count shows
the fifth wave of the third wave in progress. The first target is in the
$65.77-$66.20 area, this being calculated using the wave projections.

In case of a wave iv continuation below the current support
at $62.10, the next target for wave iv will be in the $60 area.

The EURUSD cross reached the 1.2500 support area this
morning as the EU leaders failed yesterday to reach an agreement on common European
bonds.

Technically, the daily chart shows a descending triangle formed
in the February – May time range and the classic target is in the 1.2500 area.
A broader support zone stands between the 1.2500 and 1.2630 levels as the lows
of August 2010 and January 2012 are representing a key level.

If a reversal pattern will form in this area and the bad European
news will fade, the euro will bounce towards the 1.2800 level (T1 trend line)
in the first stage.

The Cisco Systems
shares price dropped in the first part of this month, after the earnings
release and the buyers came in the market in the $16.36 area to stabilize the
price.

The long term chart reveals the strong horizontal support in
the $13.60 area that was successfully tested in March 2009 and in August 2011.
However, the market developed lower highs in the past five years, giving a sign
that the bears are still dominating the market.

Focusing on the mid-term price action, we can notice that
the price is stalling in the 61.8% retracement level of the August 2011 – March
2012 rise that ties in with some key points set in the summer of 2011. Whatever
the main trend direction will be, a move towards the $18.23 (+9.0%) level is
likely in the next weeks.

Tuesday, May 22, 2012

The target on S&P ($1,292) has been reached on Friday,
as expected since May 11th, when a Head&Shoulders pattern has
been completed.

The strong bounce of yesterday (+1.60%) proved the investors
reversal sentiment from a key support zone. The Greek problem has been put on
hold until the mid of June, when new elections are planned. This three week
period could turn into a rally on the major international markets, especially
if the US economic data, the FED and the EU officials will sustain the growth.

The first important resistance comes at $1,325 but the
bounce could easily travel towards the $1,350 area in the up coming weeks.

The daily chart of Crude Oil (WTI) shows the piercing
pattern formed in the last couple of days in the support zone between the
$90.00 and $92.20 levels.

Technically speaking, this is a reversal pattern that marks
the beginning of a rally. The closest target is in the $98.15 area, which would
provide a 5.9% increase in crude oil price.

Even though the Organization for Economic Cooperation and
Development (OECD) trimmed economic growth forecast in the euro area (according
to Bloomberg), the oil market could easily reverse on the agreement between
Iran and International Atomic Energy Agency on nuclear inspections.

Moreover, the technical outlook suggests higher prices in
the next month as the $90.00-$92.20 area represents a cluster of supports.